The video game company behind Super Mario is reportedly moving forward with a massive stock divestiture plan that could reach approximately $1.9 billion, according to insider sources familiar with the matter.
Three individuals with knowledge of the situation indicate that Nintendo is preparing to dissolve strategic shareholding arrangements, which would allow MUFG Bank and Bank of Kyoto to offload their stakes in the gaming powerhouse. Sources suggest the Kyoto-headquartered company may finalize this decision by Friday and is also considering implementing a stock buyback program.
The anticipated sale would total around 300 billion yen, marking a significant financial move for the entertainment company. Nintendo has not provided any response to inquiries regarding these reports, and the sources requested anonymity due to the confidential nature of the information.
Following news of the potential sale, Nintendo’s stock price moderated earlier gains, closing up 2.4% for the day.
This wouldn’t mark the first time these financial institutions have reduced their Nintendo holdings. In 2019, both banks participated in a similar divestiture totaling approximately 71 billion yen, aligning with their established policies to decrease cross-shareholding arrangements.
Current ownership data from September shows Bank of Kyoto, a regional financial institution, maintaining a 4.19% ownership stake in Nintendo. MUFG Bank, Japan’s largest financial institution, holds a 3.62% stake through its trust banking division.
Neither Mitsubishi UFJ Financial Group nor Kyoto Financial Group provided responses to requests for comment. However, Kyoto Financial’s stock price surged 9% following the reports.
This development aligns with broader regulatory pressure from Japanese authorities and the Tokyo Stock Exchange, who have been pushing domestic corporations to eliminate cross-shareholding practices. Toyota recently announced similar plans involving approximately $19 billion in share sales by banks and insurance companies.
Cross-shareholding arrangements, where companies maintain ownership stakes in each other to strengthen business relationships, have faced criticism from corporate governance advocates and international investors. Critics argue these practices shield company leadership from shareholder accountability. While such arrangements have been standard practice in Japan for many years, they remain uncommon in Western business practices.
